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Deputy Minister of Finance Nguyen Duc Chi speaks at the conference

Regarding the movements of the stock market, following the trend in 2021, Vietnam's stock market continued to grow during the beginning of the year, but after that, the market saw a downtrend in terms of scores, stock prices and liquidity, reported by the SSC.

Along with the trend of the world stock market and the psychological impact of some domestic factors, the VN-Index some time dropped to less than 1,200 points from the peak of more than 1,500 points established in January 2022.

However, given by many positive and timely solutions of state management agencies, investor sentiment has improved and the stock market has recovered quite positively in the last two weeks of May 2022.

According to the SSC’s report, facing strong fluctuations of the stock market, the SSC has offered solutions to ensure the safe and stable operation.

Accordingly, the SSC has assigned VNX to request HoSE, HNX to require that listing organizations and those registering for trading organization must report within 24 hours from the time the stock price has risen to the ceiling, or decreased from five consecutive sessions or more on information related to companies that affects stock price movements; and request the Stock Exchange disclose information about the securities company's proprietary transactions.

Along with that, the SSC has requested the VNX to adjust the final settlement price of the VN30 index futures contract on the maturity date; asked the Vietnam Stock Exchange and the Vietnam Securities Depository Center (VSD) to study technical solutions to block transactions of major shareholders and insiders and not to disclose information before trading.

Speaking at the conclusion of the conference, Deputy Minister of Finance Nguyen Duc Chi acknowledged the results and efforts of the SSC in the first five months of the year, especially the timely and effective implementation of solutions to reassure investors' psychology and help the stock market stabilize soon.

Moreover, it is necessary to quickly remove remaining shortcomings to improve efficiency of the market management and creating conditions for sustainable development of the stock market.

Deputy Minister said the SSC and other units have many important tasks in 2022, so it is necessary to make efforts and set the highest determination to succeed in plans set out at the beginning of the year.

As for the movements of the stock market, although there have been a positive recovery in recent weeks and in the medium to long term, it is still supported by macro-fundamental factors, as well as internal factors of the market, but the global context is facing many challenges and unpredictable fluctuations. Therefore, the Deputy Minister requested to further monitor and strengthen prediction to proactively support stable development of the stock market.

From now until the end of 2022 and in the near future, Deputy Minister Nguyen Duc Chi requested units to focus on implementing many key contents,including:

Reviewing legal regulations and policies to promptly propose the Ministry of Finance to submit amendments and supplements to all levels in a timely manner, to meet the actual development of the stock market, especially in the past two years of pandemic.

Strengthening the management and supervision of activities of securities trading organizations to ensure the healthy operation and compliance with the law, thereby promoting their role as an intermediary unit providing services and products on the stock market;

Enhancing the supervision of the stock market ane improving the role of monitoring at all levels, especially the frontline supervisors to promptly detect abnormal transactions; closely monitoring public companies; strengthening strict supervision on information disclosure, especially financial information, audited financial statements, as well as improving the quality of audit work of organizations providing audit services; and reviewing, inspecting and taking measures to handle violations of enterprises that do not comply with regulations on equitization associated with listing/registering for transactions on the stock market.

The Deputy Minister also requested to speed up the testing process and soon complete the KRX information technology system to put it into operation, creating conditions to issue new products and services for the stock market in the near future.

The Vietnam Stock Exchange perfects the supervision criteria system, building a warning system for securities transactions with abnormal signs; and research and propose to amend some criteria of VN30 index.

Regarding the upgrade of the stock market, the SSC continued to complete the criteria, proactively proposed to the Ministry of Finance to work with relevant ministries and agencies so that the Vietnamese stock market could soon be considered for upgrade from the marginal market to the merging market.

Focusing on solutions to stabilize the stock market

The Deputy Minister requested to continue strengthening the inspection, examination and handling of violations to ensure disciplines in the stock market. When detecting criminal elements, it is necessary to be proactive and closely coordinate with competent agencies in strictly handling violations.